CAPITAL INVESTMENT PLAN KERICHO...Table 3-1: Summary of Revenue Streams for the FY 2013/2014 to FY...

The County Government of Kericho

in Collaboration with

Ministry of Infrastructure, Lands, Housing and Urban Development

Kenya Municipal Programme

Consultancy Services for Digital Topographical Mapping and the Preparation of Integrated

Strategic Urban Development Plan for Kericho Town

CAPITAL INVESTMENT PLAN

KERICHO

May 2017

TABLE OF CONTENTS

LIST OF FIGURES ............................................................................................................................. 3

LIST OF TABLES ............................................................................................................................... 4

LIST OF ABBREVIATIONS .............................................................................................................. 5

1. INTRODUCTION ........................................................................................................................... 6

1.1 BACKGROUND .................................................................................................................. 6

1.2 CAPITAL INVESTMENT PLAN ....................................................................................... 6

2. PROJECT PRIORITISATION ....................................................................................................... 7

2.1 INTRODUCTION ................................................................................................................ 7

2.2 IMPLEMENTATION PLAN ............................................................................................... 7

2.3 PRIORITIES ESTABLISHED AT THE WORKSHOP .................................................... 20

3. FUNDING OPTIONS .................................................................................................................... 21

3.1 BACKGROUND ................................................................................................................ 21

3.2 REVENUE PERFORMANCE 2013-2016 ........................................................................ 21

3.3 RECOMMENDATIONS TO ENHANCE THE COUNTY’S REVENUE ....................... 24

3.4 BUDGET FRAMEWORK FOR FY 2016 - 2017 ............................................................. 26

3.5 FUNDING OF PRIORITISED PROJECTS ...................................................................... 28

3.6 PUBLIC PRIVATE PARTNERSHIPS .............................................................................. 30

4. CAPITAL INVESTMENT PLANS............................................................................................... 33

4.1 SUMMARY ....................................................................................................................... 33

4.2 CIP 1: Construction of motorable roads within proposed industrial areas ........................ 35

4.3 CIP 2: Construct dams for surface run-off irrigation ......................................................... 36

4.4 CIP 3: Rehabilitation of existing and increased water reticulation coverage to additional

76,000 households including increase in storage capacity ....................................................... 37

4.5 CIP 4: Upgrade of water treatment works to additional 13,000 m3/day ............................ 38

4.6 CIP 5: Upgrade of sewer reticulation in CBD .................................................................... 40

4.7 CIP 6: Construction of waste transfer stations in CBD, Kapsoit, Brooke and Kapsuser

markets ..................................................................................................................................... 41

4.8 CIP 7: Construction of Fire sub-stations at Kapsuser and Kapsoit, and upgrade of fire station

headquarters ............................................................................................................................. 42

4.9 CIP 8: Street lighting .......................................................................................................... 44

4.10 CIP 9: Construction of proposed and upgrade of existing transport corridors ................ 45

4.11 CIP 10: Construction of early childhood development and primary schools .................. 47

4.12 CIP 11: Construction of secondary schools .................................................................... 48

4.13 CIP 12: Construction of level 5 secondary medical facilities .......................................... 49

4.14 CIP PPP 1: Construction of Amusement Park ................................................................. 50

4.15 CIP PPP 2: Development of an ecolodge ......................................................................... 51

LIST OF FIGURES

Figure 3-1: Actual Financial Trend (2013-2016) ............................................................................... 23

LIST OF TABLES

Table 2.1 Economic Development Implementation Plan .................................................................... 8

Table 2.2 Environment Projects Implementation Plan ...................................................................... 10

Table 2.3 Recreation Projects Implementation Plan ......................................................................... 11

Table 2.4 Disaster Management Implementation Plan ...................................................................... 11

Table 2.5 Water Supply Implementation Plan ................................................................................... 12

Table 2.6 Sewerage and Sanitation Implementation Plan.................................................................. 12

Table 2.7 Storm Water Drainage Implementation Plan ..................................................................... 13

Table 2.8 Solid Waste Management Implementation Plan ................................................................ 13

Table 2.9 Fire Safety Implementation Plan ....................................................................................... 14

Table 2.10 Electricity and Street Light Implementation Plan ............................................................ 14

Table 2.11 Housing and Informal Settlement Implementation Plan .................................................. 15

Table 2.12 Transportation Implementation Plan................................................................................ 16

Table 2.13 Tourism Management Implementation Plan .................................................................... 17

Table 2.14 Socio- Cultural Development Implementation Plan ........................................................ 18

Table 2.15 Security Projects .............................................................................................................. 18

Table 2.16 Institutional Development Implementation Plan ............................................................. 19

Table 3-1: Summary of Revenue Streams for the FY 2013/2014 to FY 2015/16 ............................. 22

Table 3-3: Revenue Collection Efficiency in 2015-16 ...................................................................... 23

Table 3.4: Budgeted Revenue FY 2016-17 ........................................................................................ 27

Table 3.5: Budgeted Expenditure FY 2016-17 .................................................................................. 27

Table 4.1 Summary of Capital Investment Plan ................................................................................ 33

LIST OF ABBREVIATIONS

CBD Central Business District

CBO

CGK

Community Based Organisations

County Government of Kericho

CCTV Closed Circuit Television

CIP Capital Investment Plan

DMP Disaster Management Plan

EIA Environmental Impact Assessment

EMCA Environmental Management and Coordination Act

GIS Geographical Information System

GoK Government of Kenya

ICT Information and Communication Technology

ISUDP Integrated Strategic Urban Development Plan

KeNHA Kenya National Highways Authority

KeRRA

KFS

Kenya Rural Roads Authority

Kenya Forest Service

KMP

KP

Kenya Municipal Programme

Kenya Power

KURA

KWS

KAA

Kenya Urban Roads Authority

Kenya Wildlife Service

Kenya Airports Authority

NEMA National Environmental Management Authority

NMT Non-Motorized Transport

PPP Public Private Partnership

SEZ Special Economic Zone

SME Small and Medium Sized Enterprises

SWM Solid Waste Management

TOR Terms of Reference

WTP Water Treatment Plan

WWTP Waste Water Treatment Plan

1. INTRODUCTION

1.1 BACKGROUND

This Capital Investment Plan (CIP) seeks to provide practical guidance on the implementation of

the capital development aspects within the Integrated Strategic Urban Development Plan (ISUDP)

for Kericho Town. It is a three year rolling plan, which includes estimated costs and responsibilities

for implementation of agreed investments, as well as a financing plan. The CIP will assist the

County of Kericho in their budget process. In addition, it serves as a key tool for resource

mobilization from national government, line ministries and agencies, as well as development

partners. When used in conjunction with the ISUDP, the CIP provides justification and impact of

the proposed capital projects and initiatives.

Several strategic intervention sectors have been listed in the CIP including economic development,

recreation, water supply, sewerage & sanitation, solid waste management, fire safety, electricity &

street lighting, transportation, tourism management, and socio-cultural development. The

interventions address the priority needs as identified by the stakeholders in concert with the

technical team; and are affordable within the current budgetary environment. This is in line with

the terms of reference that states that a participatory process will be followed that reflects publicly

agreed local priorities for investment in basic infrastructure services and is both financially realistic

and feasible.

1.2 CAPITAL INVESTMENT PLAN

This report addresses these issues as follows:

i. The budgetary limitations

ii. Prioritization of demand

iii. Capital Investment Plans for priority projects

iv. Summary cash flow

2. PROJECT PRIORITISATION

2.1 INTRODUCTION

The identification of capital projects for investment and development was done through a structured

participatory process, involving all key stakeholders, as well as ensuring both relevance and

affordability within the planning period. The key steps followed were:

1. Stage 1 – Review all capital projects in the ISUDP

2. Stage 2 – Prioritize those to be completed or initiated in the first three years, followed by

preliminary costing.

3. Stage 3 – Review priorities established during the workshops drafting the ISUDP, assessing

how realistic the projects are within the County's budget ceilings

4. Stage 4 – Prepare a short list of projects that met criteria in 2 and 3.

5. Stage 5 – Prepare a detailed CIP, which is the whole content of this report.

2.2 IMPLEMENTATION PLAN

The planning period for the ISUDP is 20 years, with the implementation divided in to four phases,

each having a five years duration. Phase I (2017-18 to 2021- 22), Phase II (2022-23 to 2026-27)

Phase III, (2027-28 to 2031-32) and Phase IV (2033-34 to 2036-37). The Identified projects and

their proposed timing and duration for implementation are presented in Table 2.1 – 2.16. The CIP

constitute sector wise implementation plan for the 20 year implementation period. It also contains

the time period for various activities and a list of institutions responsible for implementation.

Consultancy Services for Digital Topographical Mapping and the Preparation of Integrated Strategic Urban Development Plans Kericho Town, Kenya

8

Table 2.1 Economic Development Implementation Plan

Projects

Quantit

y

Units

YEARS

Institution

Responsibility Phase I Phase II Phase III Phase IV

2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

Allocate land for new industrial

areas

2.5 Ha CGK & Ministry of Trade

and Industrialization.

Notification of the land

demarcated for industrial development

1 No CGK & Ministry of Trade


Allocate land for new

commercial districts (Brooke,

Kapsoit & Kapsuser)

55 Ha CGK & Ministry of Trade


Notification of the land

demarcated for commercial

development

1 No CGK & Ministry of Trade


Electricity Supply in the

proposed commercial and

industrial area

5 km Kenya Power (KP)

Construct motorable Roads

within proposed Industrial area

5 km CGK & KURA

Construct truck terminals 5 ha CGK, KURA & KeNHA

Formulate county led SMEs

policies

1 No CGK

Lower transaction costs (Policy) 1 No CGK

Policy on cottage industries and

value chain development

1 No CGK

Establish County led SMEs

oriented financial institution

1 No CGK

Establish water harvesting

technologies,

3 No CGK & Ministry of water

Promotion of organic manure and

high yield seeds

1 No CGK & Ministry of

Agriculture

Dams for surface runoff for 5 No CGK & Ministry of Water


9

Projects

Quantit

y

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

irrigation (Peri-urban areas)

Promote soil conservation and

soil fertility

1 Town CGK & Ministry of

Agriculture

Establish County funding for

agricultural based activities


Agriculture

Allocate Juakali traders

designated areas in Brooke,

Kapsoit & Kapsuser and urban

core

0.5 ha CGK & Ministry of Trade


Training & capacity building on products improvement annum)

40 No CGK & Ministry of Trade and Industrialization.

Develop a Town Investment Policy

1 No CGK

Develop Investment Information Centre

1 No CGK

Give incentives to investors including serviced land and tax

holidays (Policy formulation)

1 No CGK


10

Table 2.2 Environment Projects Implementation Plan

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

By laws for EIA 1 No

Conservation area management

plans (CBD, Tea Plantations & Forest, Doinyosioyet Wetland,

Kapsoit, Kapsuser, Brooke)

6 No CGK & NEMA

Conserve the Forest areas around

Tea Plantations

10 Sq km CGK & NEMA

Conserve the riparian areas for the

entire Doinyosioyet wetland

system,

10 Sq km Tea companies and KFS

Conserve riparian areas along the

wetlands at Kaposit and Kapsuser

markets

5 Sq km CGK

Conserve riparian area along from the banks of Kimugu River banks

along the entire river basin

5 Sq km CGK

Conserve Public parks (existing

Uhuru Gardens and Moi Gardens

in the CBD)

2 Sq km CGK


Table 2.3 Recreation Projects Implementation Plan

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

Neighborhood Park 20 1ha CGK

Ward Level Park 2 1ha CGK

Neighbourhood Playground 20 1ha CGK

Stadium 1 5ha CGK

Amusement park 1 30ha CGK

Social Halls/ and Community

Centres

12 0.25ha CGK

Table 2.4 Disaster Management Implementation Plan

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

Disaster Management Committee 1 No CGK/NEMA

Disaster Management Sub-

Committee in Brooke, Kapsoit,

Kapsuser

3 No CGK/NEMA

Disaster Management By-Law 1 No CGK/NEMA


12

Table 2.5 Water Supply Implementation Plan

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

Increase water reticulation

coverage to households in the

built up areas

76,000 No CGK, Ministry of Water

& NGOs

Increase tank storage capacity 4 No CGK

Upgrade the water treatment

works

100,000cm/day 1 CGK

Table 2.6 Sewerage and Sanitation Implementation Plan

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

Increase sewerage coverage and capacity to households in the built

up areas

76,000 No CGK

Upgrade the sewer reticulation in

the CBD

10 Km

sq

CGK

Stop drainage of sewer into rivers

and drainages

1 Town CGK


13

Table 2.7 Storm Water Drainage Implementation Plan

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

Establish surface runoff

catchments for integration into the land use plan

1 Town CGK

Drainage channels and outfalls integration from the CDB into the

rivers

10 Km sq

CGK

Confine drains to natural drainage

system to the extent possible

1 Town CGK

Land acquisition plan development

for necessary compensation where

necessary in CBD, Kapsoit,

Kapsuser and Brooke

15 Km

sq

CGK

Table 2.8 Solid Waste Management Implementation Plan

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

A landfill site be identified and

developed

1 No CGK

A comprehensive study on solid

waste management be undertaken

to work out the best strategy for

waste management in the town.

1 NO CGK

Waste transfer stations in CBD

(main commercial area, bus stage, market, stadium and hospital)

4 No CGK

Waste transfer stations in Kapsoit Market

2 No CGK

Waste transfer stations at Brooke market

2 No CGK


14

Waste transfer station Kapsuser market

1 No CGK


15

Table 2.9 Fire Safety Implementation Plan

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

Sub-Fire station (Kapsuser,

Kapsoit)

2 No CGK

Fire Station Headquarters

(Upgrade)

1 No CGK

Fire Hydrant (every

neighborhood)

500 No CGK

Table 2.10 Electricity and Street Light Implementation Plan

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

Grid network Coverage 100 % CGK

Street Lighting 30 km CGK


16

Table 2.11 Housing and Informal Settlement Implementation Plan

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

Municipal Housing (low cost) 7,000 No CGK

Road improvement to bitumen in residential areas (include

Informal settlements)

40 km CGK

By laws for affordable

building material

CGK

By laws on tenure in Informal

settlements

CGK


17

Table 2.12 Transportation Implementation Plan

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

The B1 road in Kericho shall

have only 4 lanes in total; the

two extra lanes will be

allocated to bus stops and non-

motorized transport;

CGK & KeNHA

Connection to Motobo and

Nyagacho improved by two

measures: pavement of the

existing road linking them to

the B1 road after the Kisumu-

Bomet roads junction; a new

road creating a short-cut to

reach the CBD through the

Doinyosoiyet swamp near the

County Referral Hospital;

CGK & KeNHA

Building a multilevel parking

near the CBD

CGK

Prison relocated to Kapsoit

land to be converted into

buspark and multilevel parking

CGK & NLC

A system of bus stop on key

arterials (one each 300 m in the

urban area) ensure to cover all

the main point of interest of the

town

40 No CGK


18

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

NMT lanes in all key roads 25 km CGK, KeNHA and

KURA

Pedestrianize 30% of roads in

CBD

3 km CGK, KURA

Table 2.13 Tourism Management Implementation Plan

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

Tourism Liason Office 1 No CGK & Ministry of

Tourism

Profiling attractions in the

Circuit in Kericho

(Consultancy)


Tourism

Strategy to Support

development of hotels through

planning incentives


Tourism

Establishment of Animal

Sanctuary in Brooke


Tourism, KWS

Establish a Cultural Centre at Kapsuser

1 No CGK & Ministry of Tourism

Brand the Airport as part of the Tea Farm tour package

1 No CGK, KAA & Tea Company

Create trails into the forest with attractions

20 Km KFS

Develop an Eco Lodge 1 No KFS and CGK


19

Table 2.14 Socio- Cultural Development Implementation Plan

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

ECD 46 No CGK

Primary School 46 No Ministry of education

Secondary School 20 No CGK & Ministry of

Health

Level 5: Health facilities 1 No CGK

Level 4: Health facilities 3 No CGK

Cemetery 1 No CGK

Crematorium 1 No CGK

Town Library 1 No CGK

Community Library (Kapsoit,

Brooke, Kapsuser)

3 No CGK

Community Centre (Kapsoit,

Brooke, Kapsuser)

3 No CGK

Orphanage 1 No CGK

Sub-Post Office in Kapsoit

and Kapsuser

2 No Ministry of ICT

Table 2.15 Security Projects

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

Police Post (In neighborhoods) 6 No Ministry of Interior

Security

Police Station 9Kapsoit, Kapsuser,

Brooke)

3 No Ministry of Interior

Security

Police County Headquarters

(upgrade)

1 No Ministry of Interior

Security

Prison (relocate to Kapsoit) 1 No Ministry of Interior


20

Security

Juvenile Home (In Brooke) 1 No Ministry of Interior Security


21

Table 2.16 Institutional Development Implementation Plan

Projects

Quantity

Units

YEARS

Institution


2017/18-2021/22 2022/23-2026/27 2027/28-2031/32 2032/33-2036/37

Develop a full Planning

Department to include Forward Planning, Development Control

and Research

1 NO CGK

Develop a GIS Unit 1 No CGK

Establish a Town Management Board

CGK

Establish ISUD Plan Monitoring

Units

CGK

Legends

Projects to be implemented in one

year.

Projects to continued.


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2.3 PRIORITIES ESTABLISHED AT THE WORKSHOP

Possible projects proposed in the draft ISUDP for implementation were subjected to priority

ranking by stakeholders. From the list of projects, stakeholders were asked to rank their top ten in

order of priority. From the individual rankings, overall rankings scores and priority rankings were

determined. Prioritisation ensures that only projects important to the community are implemented,

and that in an environment of scare resources, those most important to them are to be implemented

first.

S/N Project Score Ranking

Priority

1 Water supply to households 37 1

2 Educational facilities (ECD, Primary, Secondary) 37 2

3 Medical facilities 35 3

4 Improvement of roads 33 4

5 Broader sewerage coverage 30 5

6 Improved waste collection and management 29 6

7 Street lighting 27 7

8 Fire stations and fire safety 21 8

9 Improving tourist facilities 20 9

10 Social halls and community centres 19 10

11 Amusement park 14 11


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3. FUNDING OPTIONS

3.1 BACKGROUND

This chapter presents the County’s revenue and expenditure performance, as well as identifies

potential sources for improving the County’s revenue and strategy for resource mobilization. It also

presents the challenges encountered by the County Government in budget implementation during

the period under review. The aim is to develop an efficient and sustainable revenue generation,

prudent utilization and management of county resources to provide basis for implementation of

projects identified and prioritised under the ISUDP.

The major sources of funds include:

1. Local Revenue: Article 209 (3) of the Constitution empowers the county governments to

impose two types of taxes and charges. These sources of county government revenue in Kenya are property rates and entertainment taxes. The county government can also impose charges for any services they provide in accordance with the stipulated laws.

2. Equitable Share: The equitable share is the money parliament shares vertically between the national and the county governments. The money comes from the revenue the national government raises. The Senate then divides the equitable share of revenue allocated for the counties among them. The equitable share is the biggest source of revenue for the counties.

3. Conditional Grants. 4. Donor Funding.

3.2 REVENUE PERFORMANCE 2013-2016

Over the years, Kericho County has majorly depended on revenue from the national government.

For instance, the equitable national share in the FY 2016/17 constitutes 87 per cent of the total

revenue the county received. It should, however, be noted that the County has a potential of

generating more local revenue and be self-reliant rather than depend on revenue from the national

treasury. The Finance Act (2015) gives the County a legal mandate to collect taxes from

numerous sources within its jurisdiction.

Table 3.1 shows a summary of financial performance of Kericho County for the period

FY2013/14 to FY 2015/2016. The trend indicates an increase of revenue trend over time with a

few exceptions of some strong financial streams.


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Table 3-1: Summary of Revenue Streams for the FY 2013/2014 to FY 2015/16

Summary (Amount in Bilion Ksh.) Revenue FY- 2013/2014 FY- 2014/2015 FY- 2015/2016

Total 3.62 4.814 5.572 Source: County Government of Kericho budget estimates year 2016/2017

3.2.1 Linear Trend of Actual Financial Performance

The actual local revenue performance over the three years indicates a non-stationery trend

projection of the same indicates an upward trend of the financial growth. The unstable financial

trend could be attributed to inadequate revenue streams and inadequate methods of prudent

financial management

The actual revenue reflected in the financial report for the year ending June 2015 was exclusive of

substantial revenue potential covered in the Finance Act (2015). Figure 3.1 shows the local revenue

performance over the period between FY2013/14 to FY 2015/16.

Source: Kericho County Treasury

Figure 3-1: Actual Financial Trend (2013-2016)

3.2.2 Revenue Resource Mapping (FY 2015/16)

The trend illustrates Kericho's dependence mainly on the equitable national share for its revenue.

To finance the budget, the County expected to receive Kshs.4.51 billion (80.9 per cent) as equitable

share of revenue raised nationally, Kshs.193.69 million (3.5 per cent) as total conditional grants,

generate Kshs.440 million (7.9 per cent) from local sources, and had a cash balance of Kshs.431.40

million (7.7 per cent) from FY 2014/15. The conditional grants comprised of Kshs.98.85 million

(1.78 per cent) for Free Maternal Health Care, Kshs.57.23 million (1.0 per cent) from the Road

Maintenance Fuel Levy Fund, Kshs.17.68 million (0.3 per cent) for User Fees Foregone and

Kshs.19.93 million (0.4 per cent) as a grant from DANIDA


25

The total local revenue collected in FY 2015/16 of Kshs.434.44 million consisted of Kshs.43.72

million generated in the first quarter, Kshs.71.57 million in the second quarter, Kshs.133.84 million in

the third quarter, and Kshs.185.31 million in the fourth quarter. The revenue collected was 98.7 per

cent of the annual local revenue target, an increase from Kshs.413.31 million collected in FY

2014/15.

An analysis of the local revenue collected by stream indicated that tea produce cess recorded the

highest performance against the annual target at 165.2 per cent. This was closely followed by liquor

license fees and single business permits at 133.5 per cent and 101.4 per cent, respectively. Table 3.3

provides an analysis of the local revenue collected in FY 2015/16 by revenue stream

Table 3-3: Revenue Collection Efficiency in 2015-16

No Revenue Stream Annual Targeted

Revenue (Kshs.)

Actual Annual

Revenue (Kshs)

Actual

Revenue as a

percentage of

Annual Target

(%)

1 Tea Produce cess 33,145,428 54,756,247 165.2

2 Liquor Licence Fees 8,472,325 11,306,660 133.5

3 Single Business Permit 46,857,719 47,512,322 101.4

4 Market /Trade Fees 23,976,737 23,813,280 99.3

5 Land Rates/Plot rents 71,100,947 70,352,964 98.9

6 Bus park fees 27,257,241 26,231,569 96.2

7 Health Services-F.I.F 140,000,000 130,893,040 93.5

8 Car Parking Fees 13,064,923 12,092,520 92.6

9 Sub-County Public Health 7,613,751 6,763,202 88.8

10 House /Kiosk & Stall rents 11,937,874 10,159,639 85.1

11 Forest produce cess 9,377,609 7,391,955 78.8

12 Advertisements 8,527,273 6,531,082 76.6

13 Plan Approval fees 7,872,109 5,535,671 70.3

14 Other sources 30,796,064 21,100,582 68.5

TOTAL 440,000,000 434,440,733 98.7

Source: Kericho County Treasury


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3.2.3 Key Issues to be considered to enhance revenues

The following are some of the major challenges encountered in the collection of revenue:

1. Lack of a consolidated revenue data base at the county

2. Lack of coordination between administrators of individual revenue with other revenue

sources in terms of assessment, collection and administration;

3. Inadequate use of technology

4. Inadequate monitoring and evaluation systems

5. Inadequate revenue intelligence and vigilance system

Specifically, challenges for major revenue sources include:

1. Tea Produce Cess: There is lack of sufficient legislation to support cess collection like tea

produce and administration laws.

2. Single Business Permit (SBP)

a) Lack of integration of the SBP with other relevant revenue functions which hinders the

creation of an effective single window system

b) Inadequate human resource who are well trained

c) The SBP is centralized thus collection of revenue is inefficient

3. Land rates/plot rents

a) Lack of integration with other database

b) Lack of co-ordination among the relevant ministries for example there is no proper co-

ordination between Ministry of Land and the revenue collection section

c) The properties are not valued to determine their true values.

d) The land rate collection system is highly centralized and lacks proper communication

with the public.

e) Lack of County legislation to govern the collection of land rates.

3.3 RECOMMENDATIONS TO ENHANCE THE COUNTY’S REVENUE

Kericho County has a potential of generating higher local revenues, from property rates tax

entertainment tax, and other taxes that it is authorised to impose by an Act of Parliament as assigned

to them under Article 209 (2) of the Constitution. In addition, Article 209 (2) also enables counties

to collect fees and user charges for services provided under county legislation.

The Finance Act (2015) also gives the County a legal mandate to collect taxes from additional

revenue streams within its jurisdiction. The following cross-cutting institutional changes may be

considered to enhance the revenue across all revenue streams:

1. Improve coordination in terms of assessment, collection, administration and data sharing-the

integration of various revenue functions is critical to ensuring that all revenue sources are

easily mapped and reliable predictions about revenue potential can be made for all the

revenue sources.

2. Introduce comprehensive monitoring and evaluation systems for each revenue source.


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3. Institute adequate revenue intelligence and vigilance system and have proactive efforts to

gather information about tax evasion are imminently required.

4. There must be a consistent effort to ensure proper and integrated revenue management that

guarantees the collection of all potential revenue in a manner that is efficient, effective and

accountable. The county government should adequately invest and employ technology

through automation of the revenue collection and administration process. Automation will

eliminate leakages and contribute toward achievement of the set revenue targets.

5. Maximising on business licences, and in so doing, develop the most economic approach to

collecting revenue. This may involve partnering with the Kenya Revenue Authority (KRA).

6. Leverage on domestic tourism as a source of revenue;

7. Create a favourable environment that supports entrepreneurship and attract investments

through reform of the business regulatory frameworks. This will enhance volumes of trade

and consequently create taxation opportunities;

8. Develop a transparent and accountable system of incentives (reward) for early payments and

disincentive (penalties) for those in tax arrears to promote compliance.

9. The County Government could partner with the private sector through Public Private

Partnerships, to devise innovative mechanisms of increasing their revenue collection and

delivery of services; some of the avenues they may explore include:

(a) Tapping into private capital to fund development initiatives, and

(b) Outsourcing services from the private sector to enhance efficient and effective service

delivery.

3.3.1 Other strategies for raising revenue

Apart from the above mentioned sources of improving revenue, the following strategies are also

proposed within the County ISUDP aimed at developing an efficient and sustainable system that

will further raise the revenue for the County. They include:

1. Capacity Building and Enhanced Revenue Administration. Inadequate capacity

coupled with a revenue administration framework that does not fully support

accountability. Revenue administrators and collectors need to be facilitated through

regular capacity building on new and emerging trends in order to keep abreast with the

new ways and systems as well as international standards.

2. An up to date Valuation roll. It is worth noting that the process of getting an up to date

valuation roll is in progress. It is proposed to implement a valuation roll with all

property information of all rateable properties within the County’s boundaries. The roll

should be regularly updated.

3. Inventory for the County Assets. As per the auditor’s report for the year ending June

2015, the County Government of Kericho had no identification, valuation or formal

handing over by the Transition Authority to the County Government despite the assets

being in use. Not identifying, validating and recording on both assets and liabilities of

the defunct local authorities may occasion revenue losses for the County. The County

has since began the process of having an inventory for the county assets

4. Enforcement of the By-Laws and Regulations. It is proposed that County government

ensures that the gazette fees and charges are collected according to the proposed By-

Laws and Regulations.


28

5. Strengthening Institutional Framework. The institutions in the County mandated to

collect revenue should have legal backing to strengthen coordination, and avoid

duplication of efforts.

It will also be prudent for the County Government of Kericho to consider adopting an e-governance

platform which will allow full integration of the consolidated revenue data base at the county and

consequently linked with the Integrated Finance Management Information System (IFMIS).

Some of the proposed specific recommendations for major revenue sources are as follows:

1. Tea Produce CESS

a) Establish more barriers to minimize tax evasion

b) Have a patrol and inspection vehicle dedicated to cess collection

c) A comprehensive review of legislation to ensure cess collection is backed by sufficient

laws.

2. Single Business Permit

a) Integrate the SBP with other revenue database

b) Ensure capacity building of all staff especially those responsible for the administration

of SBP

c) Institute and decentralized collection process to enable better and increased revenue

collection

3. Land rates/plot rents

a) Utililise the GIS database and IT to improve effectiveness

b) Coordination between revenue section and ministry of land to make sure all chargeable

properties are known by revenue section

c) Employ adequate vigilance and revenue systems to be able to gather information on tax

evasion

d) Valuation of properties should be done annually to determine their true values

3.4 BUDGET FRAMEWORK FOR FY 2016 - 2017

The budget estimates for the fiscal year 2016/2017 is anchored on the key budget policy documents

namely: County Integrated Development Plan 2013 – 2017, County Budget Review and Outlook

Paper, County Fiscal Strategy paper and Annual Development Plans.


29

3.4.1 Revenue Projections

The FY 2016/2017 budget the county sources of revenue include: County Revenue i.e. locally

collected, equitable share and conditional grants. The national equitable share forms 87 per cent of

the total county revenue while whole revenue constitutes 9 %, the remaining conditional grants

form 4 per cent of the total revenue. The equitable share as captured in BPS 2016 was Ksh. 4.861

billion, donor funds i.e. Danida is Ksh. 19.93 million while conditional grants is Ksh. 182.331

million and whole revenue including Health Facility Improvement Fund was Ksh. 520.35 million.

Table 3.4: Budgeted Revenue FY 2016-17

Revenue Ksh. %Share to total Equitable share 4.861 B 87

Local revenue – including FIF 520.53M 9

Conditional grants 182.331 M 4

Donor funds (Danida) 19.93 M

Total 5.583 B 100 Source: County Government of Kericho

3.4.2 Expenditure Forecasts

The key policy documents guiding the County Government’s funding allocation decisions include:

the County Integrated Development Plan 2013-2017, County Budget Review and Outlook Paper,

County Fiscal Strategy paper and Annual Development Plans as it provides the development

priorities. In FY 2016/2017, the overall expenditures are matched with the available revenue as per

the Table 3.5.

Table 3.5: Budgeted Expenditure FY 2016-17

Expenditure Ksh. %Share to Total

Recurrent 3.885 B 70

Development expenditure that also includes

health, County Public Service Board

1.698 B

30

Total 5.583 100 Source: County Government of Kericho

In FY 2016/2017 the overall expenditure and net lending are projected at Ksh. 5.582 Billion. The

County spent a total of Kshs.4.81 billion in FY 2015/16, which was 96.0 per cent of the total funds

released for operations. This was an improvement from Kshs.4.28 billion recorded in the FY

2014/15. A total of Kshs.3.14 billion was spent on recurrent activities, while Kshs.1.68 million was

spent on development activities. The recurrent expenditure was 97.7 per cent of the funds released

for recurrent activities while development expenditure accounted for 92.9 per cent of the funds

released for development activities. The expenditure excluded pending bills as at 30th June, 2016


30

that amounted to Kshs.340.37 million for development and Kshs.219.34 million for recurrent

expenditure.

3.4.3 Additional Revenue Sources

The legislation framework created by the Finance Act (2015) gives the County a legal mandate to

collect taxes from additional revenue streams within its jurisdiction. Some of these sources are as

follows:

1. National legislation guiding county revenue collection - The government is developing a national legislation to guide counties on revenue collection. This was due to complaints that

some devolved units had come up with prohibitive taxes that have scared away investors.

The guide is meant to check on the unnecessary levies that are way above what the business

community can afford and remain in business. National Treasury Cabinet Secretary Henry

Rotich noted that a review of the fees charged by counties will also include increasing rates

paid for properties like land that currently doesn't match the current market rates and thus

more revenues for the county.

2. Property rates - The Kenya Revenue Authority (KRA) is partnering with counties to

integrate their revenue collection systems with iTax. At the same time, KRA will be

working with counties to strengthen compliance in the remission of property rates.

3. Tea Produce Cess -The successful roll out of the electronic revenue collection system and the ongoing training of the users will ease in the administrative and low collection costs of

levies thus sealing revenue leakages

3.5 FUNDING OF PRIORITISED PROJECTS

Chapter four elaborates on the funding of the prioritised projects. However this plan has propritized

for implementation, projects that are ongoing or committed on the vision 2030 national government

projects. 3.5.1 National Government Committed Projects

The identified Kenya Vision 2030 national government project and the ongoing project are as

below:

1. SME Parks

2. Tea and Dairy cluster

3. Training of engineers and technicians

4. Develop a County Sports Stadia

5. Rehabilitation of County Health Facilities to Offer Integrated and Comprehensive

Healthcare

6. Early Childhood Development Education (ECDE) mainstreaming by training school

committees PTAs, BOGs in management of Early Childhood, Primary and Secondary

education for managing school resources and teachers

7. Establish Housing Technology Centres in Each Constituency


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8. Rehabilitation of Kericho Land Registry

9. Rural Electrification programme: power connection to households over 23,ooo households

have been connected

10. Construction, rehabilitation and maintenance of rural roads : - 54 kilometre Brooke-

Chepseon Kebeneti road as well as Kericho Kipchimchim – Thesalia bypass

11. Upgrading of the Premier – Kabianga -Taplotin – Ainamoi – Thesali – Choborge – Kiburgat

road and the Kericho by-pass.

12. Procurement of the 7 billion Londiani dam 3.5.2 Donor finance

The following are on-going projects financed by donor agencies:

1. Kenya Transport Sector Support Project, (KTSSP): Construction Supervision of Grade

Separated Interchanges at Kericho (Junction B1 And C23 ) and Ahero ( Junction B1 And

A1).

2. Capacity building and training in the devolution process.

3. Kenya Electricity Expansion Project (AF-IDA-GPOBA) component World Bank funded.

4. Danish International Development Agency (DANIDA) funding operation of health centers

and dispensaries.

5. Kenya Primary Education Development (PRIEDE) project: A Global Partnership for

Education (GPE) under the supervision of the World Bank

3.5.3 Other ongoing/committed projects

The following are on-going/committed projects by the county government

1. Public Administration:

a) Construction of at least 10 ward offices

2. Finance and economic planning: operationalization of the revenue automation system ERP

a) Preparation of the valuation roll

3. Water, Energy, Environment, Forestry, & natural resource:

a) Water supply across the county

b) Rehabilitation of a dumpsite

4. Trade, Industrialization, cooperative, management, wildlife, and tourism

a) Construction of buildings (market sheds)/installation of cattle weigher

b) Conservation and improvement of tourist sites at Rerisik, Bagao, caves, Fort-tenan

and Tulwap kipsigis

c) Revival of dormant cooperatives, , Miss tourism Kenya Auditions (Kericho county

chapter

5. Education youth affairs, sports, culture and social services

a) Build more ECDE classrooms

b) Improve the status of the Kericho Green Stadium

c) Construction and equipping of a county youth talent complex for development of

youth talents

6. Land, Housing and physical planning

a) Completion of County spatial planning


32

b) Refurbishment of residential buildings

c) Refurbishment of Non-residential buildings

d) Rehabilitation of walkways/access road/car parks

7. Agriculture, livestock and fisheries

a) Rehabilitation of dips

b) Modernization of soin agricultural training center

8. Information communication and e-government

a) Refurbishments of citizen service centers

b) Expand ICT infrastructural development and civil works and electrical works in 6

ICT centers for every sub county

c) Extend wide area networks to 12 youth polytechnics and 6 ICT centers in the county

d) Development of county data center facility

e) Installation of CCTV facilities in major county entities including County

headquarters

9. Health services

a) Completion and equipment of health centers and facilities

b) Installation of health information system

3.6 PUBLIC PRIVATE PARTNERSHIPS

Infrastructure PPPs are cooperative ventures between the public sector (county governments) and

the private sector built on the expertise of each partner that best meets clearly defined public needs

through the appropriate allocation of resources, risks and rewards

Participation of the private sector in the financing, construction, development, operation, or

maintenance of infrastructure or development projects of the Government through concession or

other contractual arrangements; the establishment of the institutions to regulate, monitor and

supervise the implementation of project agreements on infrastructure or development projects and

for connected purposes, are governed by the Public Private Partnerships Act, 2013. The Act will

therefore guide all the projects proposed under a PPP arrangement.

The PPP process is overseen by a Permanent Secretary level PPP Committee that is responsible for

spearheading the PPP process and promoting the understanding and awareness among key

stakeholders and members of the public. Within the National treasury is the PPP unit whose main

functions include, among others:

1. Providing capacity building to, and advising contracting authorities or other parties involved

in the planning, coordinating, undertaking or monitoring of projects under the Act;

2. Rate, compile and maintain an inventory of public private partnership projects that are

highly rated and which are likely to attract private sector investment;

3. Develop an open, transparent, efficient and equitable process for managing the

identification, screening, prioritization, development, procurement, implementation and

monitoring of projects, and ensure that the process is applied consistently to all projects;

4. Make recommendations on the approval or rejection of projects prior to submission to the

Committee for approval;


33

5. Assist contracting authorities, where the unit considers it necessary, to design, identify,

select, prioritise, appraise, evaluate and negotiate projects;

6. Maintain a record of all project documentation;

7. Review and assess requests for Government support in relation to a project and advise the

Committee on the support that should be accorded in relation to the project;

8. Liaise with and assist the contracting authorities in their roles in the various stages of a

project cycle; and

9. Put in place measures to eliminate constraints limiting the realisation of benefits expected

from a public private partnership.

Although several different types of PPP arrangements are allowed under the law, the following are

best suited for the projects recommended to be implemented under PPP:

1. Build-Own-Operate-Transfer - the private party designs, constructs, finances, operates and maintains an infrastructure facility owned by the private party for a specified time

period not exceeding thirty years, or such longer period as may be agreed, after which the

private party transfers the facility to the contracting authority.

2. Build-Own Operate - the private party designs, finances, constructs, operates and maintains

the infrastructure facility and provides services for a specified period of time.

3. Build-Operate-and-Transfer - the private party finances, constructs, operates and maintains an infrastructure facility and transfers the facility to the contracting authority at

the end of a specified term which shall not exceed thirty years.

PPPs come with a certain level of risk. The essence of truly beneficial PPP is the sharing of risks

and rewards between partners. In this context, risks relate to any area of the promised service that

may fail and they are measured with reference to potential consequences and cost of failure and the

likelihood of occurrence. The evaluation of risk is repeated for each identified category of risk. In

transferring risk, the procuring entity aims to incentivize the private sector to manage and minimize

those risks that are within its control. The contractor can thus perform efficiently and cost-

effectively. An appropriate transfer of risk that exposes the private sector companies only to those

risks that they are best placed to manage is likely to offer the best value for money to the public

sector, although the private sector will attach a price for being exposed to risk. This means that the

public sector has to weigh carefully whether to retain certain risks or to accept the increase price

demanded by the private sector company and consequently to increase the overall costs of the

project.


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4. CAPITAL INVESTMENT PLANS

4.1 SUMMARY

The capital investment plan (CIP) focuses on prioritised projects that are likely to have a significant

impact on the quality of life of the people of Kericho, within a short period of time. The projects

were prioritised through stakeholder engagement, with an emphasis on impact, feasibility and

affordability.

The implementation plan for the ISUDP is over twenty years, i.e. up to 2038. The CIPs, however

are prepared for the first three years, and subsequently in three year rolling plans that are reviewed

annually, as stipulated in the Urban Areas and Cities Act, 2011. The projects within the CIPs

should be factored into the County's annual financial plans, paying special attention to:

1. Analysis of costs over the project life cycle (capital investments and foreseeable costs

including maintenance and operation, repairs and replacement)

2. Exploring ways of maximising co-benefits on community sustainability and resiliency

3. Preparing project-based risk assessment and risk management strategy coveringa broader

scope of possible threats to the city

4. The sources of funding

This should be done in conjunction with building a strong CIP county administrative structure, and

establishing a strong commissioning and delivery capacity. Table 4.1 presents a summary of the

projects selected for implementation in the first three years.

Table 4.1 Summary of Capital Investment Plan

S/N Projects (2017-18 to 2019-2020)

Estimated

Total Cost

(Ksh Millions)

Expected

Expenditure

Years 1-3

(Ksh Millions)

Economic Development

1 Construct motorable roads within proposed

industrial areas (5 km)

200,000,000 200,000,000

2 Dams for surface runoff for irrigation (Peri-urban

areas) 2 of 5 during CIP period

65,155,785 26,062,314

Water Supply

3 Rehabilitation of existing and increased water

reticulation coverage to additional 76,000

households including increase in storage capacity

500,000,000 500,000,000

4 Upgrade of water treatment works to additional

13,000 m3/day

308,531,000 308,531,000

Sewerage and Sanitation

5 Upgrade sewer reticulation in the CBD 200,000,000 200,000,000

Solid Waste Management


35

S/N Projects (2017-18 to 2019-2020)

Estimated

Total Cost

(Ksh Millions)

Expected

Expenditure

Years 1-3

(Ksh Millions)

6 A comprehensive study on solid waste management

be undertaken to work out the best strategy for waste

management in the town.

50,000,000 50,000,000

7 A landfill design and developed 250,000,000 250,000,000

8 Construction of waste transfer stations in CBD,

Kapsoit, Brooke and Kapsuser markets

18,000,000 18,000,000

Fire Safety

9 Construction of Sub-stations (Kapsuser, Kapsoit)

and Upgrade of Headquarters Fire station

42,000,000 42,000,000

Electricity and Street Lighting

10 Street lighting (30 km) 52,326,000 52,326,000

Transportation

11 Construction of proposed and upgrade of existing

transport corridors

2,550,000,000 444,000,000

Socio-Cultural Development

12 ECD and Primary Schools (5 of 46 each within the

CIP period)

1,610,000,000 175,000,000

13 Secondary Schools (2 of 10 within CIP period) 250,000,000 50,000,000

14 Level 5: Secondary referral medical facilities (1 of 3

within CIP period)

75,000,000 25,000,000

Total 5,605,857,000 1,314,857,000 Estimated budgeted expenditure for development

for the Years 2016-17

to 2018-19

5,094,000,000

Projected Net Surplus 3,779,143,000

PROJECTS PROPOSED UNDER PPP

15 Develop an Ecolodge PPP

16 Amusement Park (1, year 1 of 3) PPP

Based on the above summary, approximately Kshs. 1.314 billion will be required to complete the

projects slated for the first three years (2017-2018, 2018-2019, 2019-2020). The 2016-2017 budget

Kericho County budget for development expenditure is presented as Kshs. 1.698 billion. Assuming

conservatively a flat development expenditure budget over the next three years, this will total Kshs.

5.094 billion. This can easily fund the prioritized projects identified in the CIP over the three year

period.


36

4.2 CIP 1: Construction of motorable roads within proposed industrial areas

1. Project name: Construction of motorable roads within proposed industrial areas

2. Client: Kericho County Government

3. Purpose: Provide basic transport communication infrastructure within the industrial areas

4. Site details (a) Project location- Various locations within the county

(b) Land registration number ownership and size: N/A

(c) Value (if privately owned) – N/A

5. Topography, soils and geology (a) Slope - varied

(b) Soils - varied

(c) Vegetation – varied

6. Nature of on-site works: Brief description –

7. Off-site infrastructure (as required with costs): Brief description – N/A

8. Costs (Ksh. Millions at 2017 prices)

S/N Types

Component

Cost

Kshs per km

Total Cost

1 Unit cost of tarmacked roads for 5 km 40,000,000 200,000,000

Total Cost 200,000,000


37

4.3 CIP 2: Upgrade the storm water system

1. Project name: Construct dams for surface run-off irrigation


3. Purpose: Contain/Control the storm water flow





(b) Soils - varied


6. Nature of on-site works: Brief description – Construction of masonary sub-surface dams, including all site work. Dam capacity enabling 100m

3 daily extraction.



S/N Types Component

Cost Total Cost

1 Masonary sub-surface dam, assuming

100m3 water daily extraction. Construct

two (2) during CIP period.

13,031,157 26,062,314



38

4.4 CIP 3: Rehabilitation of existing and increased water reticulation coverage to additional

76,000 households including increase in storage capacity

1. Project name: Construct of a Water tanks


3. Purpose: Provide all residents with access to potable water





(b) Soils - varied


6. Nature of on-site works: Brief description - 6. Infrastructure necessary to bring clean potable water to 76,000 households spread across the town, including rehabilitation of

existing infrastructure and increase in storage capacity; construction of eight (8) water

kiosks to provide affordable access to potable water for the urban poor who are unable to

afford individual water connections; and rehabilitation and replacement of fire hydrants.



S/N Types Component

Cost Total Cost

1 Rehabilitation and extension of existing

water supply system

500,000,000 500,000,000



39

4.5 CIP 4: Upgrade of water treatment works to additional 13,000 m3/day

1. Project name: Upgrade of water treatment works to provide additional 13,000 m3/day


3. Purpose: Additional capacity will meet demand until 2030.

4. Site details (a) Project location- Kimugu




(b) Soils - varied


6. Nature of on-site works: Brief description – Construction of new intake at Kimugu river and expansion of Kimugu water treatment facility, as well as



S/N Types Component

Cost Total Cost

1 Treatment works per m3 capacity for

additional 13,000 m3

17,918 232,934,000

2 Intake and river bank protection at Kimugu

River

22,234,412 22,234,412


40

S/N Types Component

Cost Total Cost

3 Raw water main 500mm dia, unit cost per

m, for 12km

4,447 53,362,588



41

4.6 CIP 5: Upgrade of sewer reticulation in CBD

1. Project name: Upgrade of sewer reticulation in CBD


3. Purpose: Improved sewerage reticulation in the town

4. Site details (a) Project location- varies




(b) Soils - varied


6. Nature of on-site works: Brief description -



S/N Types Component

Cost Total Cost

1 Rehabilitation sewer network in CBD,

including consultancy and supervision costs

200,000,000 200,000,000



42

4.7 CIP 6: A comprehensive study on solid waste management be undertaken to work out the

best strategy for waste management in the town.

1. Project name: Comprehensive Study on solid waste management in CBD, Kapsoit,

Kapkugerwet and Kapsuser markets


3. Purpose: More efficient waste collection and disposal within the town

4. Site details (a) Project location- CBD, Kapsoit, Kapkugerwet and Kapsuser markets




(b) Soils - varied


6. Nature of on-site works: Doing a comprehensive study to the specified, giving out layout strategy and a wasted management plan.



S/N Types Component

Cost Total Cost

1 Comprehensive Study on solid waste

management in CBD, Kapsoit,

Kapkugerwet and Kapsuser markets

50,000,000 50,000,000



43

4.7 CIP 7: A landfill site design and development

1. Project name: Landfill site design and development.


3. Purpose: More efficient waste collection and disposal for Kericho

4. Site details (a) Project location- To be determined by feasibility study.




(b) Soils - varied


6. Nature of on-site works: Brief description – Location and construction of landfill site.



S/N Types Component

Cost Total Cost

1 Landfill identification and development. 250,000,000 250,000,000



44

4.7 CIP 8: Construction of waste transfer stations in CBD, Kapsoit, Brooke and Kapsuser

markets

9. Project name: Construction of waste transfer stations in CBD (4), Kapsoit (2),

Kapkugerwet (2) and Kapsuser (1) markets


11. Purpose: More efficient waste collection and disposal within the town

12. Site details (a) Project location- CBD, Kapsoit, Kapkugerwet and Kapsuser markets




(b) Soils - varied


14. Nature of on-site works: Brief description – Construction of the waste transfer stations at 9 sites



S/N Types Component

Cost Total Cost

1 Infrastructure required to temporarily store

and transfer waste for 9 sites including

supervision.

2,000,000 18,000,000



45

4.8 CIP 9: Construction of fire stations at County Headquarters and sub-fire stations at

Kapsuser and Kapsoit.

1. Project name: Construction of Fire sub-stations at Kapsuser and Kapsoit, and upgrade of

fire station headquarters


3. Purpose: Reduction in response time for fire emergencies

4. Site details (a) Project location- Kapsuser and Kapsoit




(b) Soils - varied


6. Nature of on-site works: Brief description – Greenfield construction and site works for two sub-stations, and upgrade of existing main station.



46


S/N Types Component

Cost Total Cost

1 Housing structure, electrical, mechanical

500m2 @ Ksh 25,000/m

2

12,500,000 25,000,000

2 Overhead/site/misc @ 15% 1,875,000 3,750,000

3 Contractor profit @ 3% 375,000 750,000

4 Professional fees/supervision @ 10% 1,250,000 2,500,000

4 Rehabilitation of Fire-Station 10,000,000 10,000,000



47

4.9 CIP 10: Street lighting

1. Project name: Street lighting


3. Purpose: Improved navigation and security on the identified roads

4. Site details (a) Project location- 30 km of identified roads




(b) Soils - varied


6. Nature of on-site works: Brief description - Street lighting steel poles are placed at an interval distance of between 30m – 35m. A total of 855 lights to be installed to cover 30km.



S/N Types Component

Cost (Kshs)

Total Cost

(Kshs)

1 855 installed streetlights 60,000 51,300,000

2 Supervision @2% 1,026,000

Total Cost 855 52,326,000


48

4.10 CIP 11: Construction of proposed and upgrade of existing transport corridors

1. Project name: Construction of proposed and upgrade of existing transport corridors


3. Purpose: Improved motorised and non-motorized transport and circulation around and within the town.

4. Site details (a) Project location- various




(b) Soils - varied


6. Nature of on-site works: Brief description - Widening and tarmacking various roads as provided in the cost table below.



49


S/N Types

Avg.

current

right of

way (m)

Prop.

right of

way

(m)

Approx

.

length

(km)

Unit

Cost

(Kshs

Mil./

km)

Total

Cost

(Kshs

Mil.)

Comp.

Cost

(Kshs

Mil.)

1 John Kerich – B1 Loop

Road (unclassified)

6 15 1.5 40 60 60

2 Kapkugerwet –

Kaptebeswet

18 25 12.0 60 720 720

3 Kaptebeswet –

Kapsuser

12 25 7.5 60 450 450

4 All streets within

Kapkugerwet

4 – 6 10 1.8 40 72 72


Kapsuser

4 – 6 10 1.5 40 60 60


Kapsoit

4 – 6 10 2.2 40 88 88

7 Nyagacho – Ainamoi –

Kapsoit road

12 25 15.6 60 936 936

8 Motobo/Nyagacho –

Isaac Salat Road

4 – 6 15 2.1 40 84 84

9 Missing Link B1-

Dumpsite

12 15 2 40 80 80

Total Cost 2,550 2550


50

4.11 CIP 12: Construction of early childhood development and primary schools

1. Project name: Construction of early childhood development and primary schools


3. Purpose: Improved access to educational facilities to meet the needs of a growing propulation

4. Site details (a) Project location- Various




(b) Soils - varied


6. Nature of on-site works: Brief description – For the additional primary school to be constructed, also construct and equip a two stream ECD school. Equip 16 primary school

classrooms 4 ECD, administration block, play field, fencing and gate, 10 toilets, dining hall,

kitchen, library and 2 large water tanks.



S/N Types QT Component

Cost Total Cost

1 Site preparation and construction

of facilities, including supervision

4 30,000,000 120,000,000

2 Basic equipping school 4 5,000,000 20,000,000

Total 140,000,000


51

4.12 CIP 13: Construction of secondary schools

1. Project name: Construction of secondary schools


3. Purpose: Improved access to education and increased transition rate from primary to

secondary school.

4. Site details

(a) Project location-



5. Topography, soils and geology (d) Slope - varied

(e) Soils - varied

(f) Vegetation – varied

6. Nature of on-site works: Brief description – Construct, equip two stream secondary school

with : 16 classrooms: 3 laboratories, 2 administration block, 2 play field, fencing and gate,

12 toilets, 2 dining hall, 2 kitchen, 2 library and 2 large water tanks.



S/N Types QT Component

Cost Total Cost

1 Site preparation ,construction and

supervision

2 21,000,000 42,000,000

2 Basic equipping of school classrooms

and labs

2 4,000,000 8,000,000

Total 50,000,000


52

4.13 CIP 14: Construction of level 5 secondary medical facilities

1. Project name: Construction of Construction of level 5 secondary medical facilities


3. Purpose: Improved healthcare within the County

4. Site details (a) Project location- Kapsiot or Kapsuser




(b) Soils - varied


6. Nature of on-site works: Brief description – Greenfield construction of health facility.



S/N Types Component

Cost Total Cost

1 80-Bed hospital 462,864,780 462,864,780


4.14 CIP 15 PPP 1: Construction of Amusement Park

1. Project name: Construct of Amusement Park



53

3. Purpose: To provide additional tourism revenue and employment

4. Site details (a) Project location – To be determined




(b) Soils - varied


6. Nature of on-site works: To be determined after feasibility study in line with requirements of PPP Act (2013).



To be determined after feasibility study in line with requirements of PPP Act (2013).


54

4.15 CIP 16 PPP 2: Development of an ecolodge

1. Project name: Construction and Development of an Ecolodge


3. Purpose: To boost tourism in the region, and provide employment.

4. Site details (a) Project location- To be determined




(b) Soils - varied


6. Nature of on-site works: To be determined after feasibility study in line with requirements of PPP Act (2013).



To be determined after feasibility study in line with requirements of PPP Act (2013).

CAPITAL INVESTMENT PLAN KERICHO...Table 3-1: Summary of Revenue Streams for the FY 2013/2014 to FY...

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